REGULATION

Credit Suisse fined for trading failures

Credit Suisse fined for entering orders at incorrect limit prices in Australia.

By Hayley McDowell hayley.mcdowell@strategic-i.com March 15, 2017 9:38 AM GMT

Credit Suisse has been fined $170,000 for not having any filters in place to determine limit prices over a five-year period.

The Markets Disciplinary Panel (MDP) in Australia found a client of Credit Suisse mistakenly entered options transaction orders via a system that referenced incorrect limit prices.  

The transactions that took place were 96% below the extreme trade range reference price for those products, although were cancelled soon after entry.

MDP explained the orders were allowed to go through to the market because Credit Suisse failed to have the correct filters in place to determine limit prices for options contracts.

“Credit Suisse failed to have such filters in place for a period of more than five years, during which time approximately 9,800 orders for option market contracts were entered through its AOP system,” MDP said.

The incident for which the fine was levied took place in April 2016, but MDP added, “underlying deficiencies had existed for an unacceptable period of tine.”

The authority warned Credit Suisse a repeat of the misconduct would result in a higher penalty in future.